One way to improve your wealth is to observe how the rich invest their money, learn why, and potentially follow suit. University endowments are some of the world’s wealthiest institutions. Endowments
One of my tenants joined a massive private university endowment as an analyst, so I asked her about their alternative investment allocation (real estate, absolute return, private equity, etc). She responded, “It’s well over 50%.” I was surprised because I don’t know many regular folks who have that high of an allocation in alternatives. Maybe 5-20%, but certainly not 50%+.
She said, “They’ve got no problem investing a majority of their assets in alternatives because they don’t need the liquidity, have invested in alternatives for a long time already, are comfortable with the risk profile, and they’re only shooting for a 5% annual return.”